Camelot Information Systems Inc., which helps companies install and maintain business-management software, declined after pricing an initial public offering at the low end of its forecast range.
Camelot Information, founded in 2000, lost 3.2 percent to $10.65 in U.S. composite trading today. The Beijing-based company sold 13.3 million American depositary receipts at $11 each yesterday after seeking as much as $13 apiece. Camelot Information, which works on behalf of International Business Machines Corp. and Accenture Plc, will get 69 percent of the $147 million in proceeds. Owners such as New York-based Citigroup Inc.’s venture capital funds will receive the rest.
The sale comes after four companies from 3-D movie projector maker RealD Inc. to interactive whiteboard designer Smart Technologies Inc. raised more than $1 billion combined last week and the Standard & Poor’s 500 Index rallied from a 10-month low. Filings for initial offerings last quarter climbed to the highest level since 2007 even as deals worldwide were canceled at the fastest rate since the collapse of New York-based Lehman Brothers Holdings Inc.
“The risk trade is alive and well, but very selective,” said Michael Yoshikami, who oversees about $1 billion as chief investment strategist at YCMNet Advisors in Walnut Creek, California. “The word ‘China’ is not an automatic success anymore in terms of equity returns.”
China’s export gains will be limited as Europe’s sovereign- debt crisis damps demand and with post-crisis restocking gradually coming to an end, commerce ministry spokesman Yao Jian said in Beijing yesterday.
Camelot Information, which gets most of its sales in China, Japan and Taiwan, is listed on the New York Stock Exchange under the ticker CIS. Each ADR, which represents an ownership stake in an overseas company that is issued by U.S. banks and usually trades on American exchanges, will give investors four common shares of Camelot Information.
Goldman Sachs Group Inc. in New York and London-based Barclays Plc led the offering.